Months after PLDT’s plans of acquiring Sky Cable did not push through, the latter formally entered into a commercial arrangement with Converge. The partnership’s goal is for Sky to “upgrade its network and improve services to its subscribers” using Converge’s nationwide fiber network.
What does this mean? Similar to the Assets Sharing Deal Converge signed with DITO last January, this also means that Sky will be using Converge’s network to improve its services to its customers. For Converge’s part, the partnership also aims to maximize its current fiber network.
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Between the two, Sky will benefit more, as this serves as a boost to its services–most of its infrastructure utilizes dated copper connections. For Converge’s end, the partnership would mean additional revenue for them given the scale of their fiber-to-the-home (FTTH) network in the Philippines.
To date, Converge’s fiber network has over eight million ports and a fiber footprint extending over 700,000 kilometers that reaches 16 million Filipino homes nationwide. Converge currently serves 2.3 million residential broadband customers nationwide.
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The partnership also makes sense for Converge, especially since CEO Dennis Anthony Uy started in the cable television business. That being said, Uy has the capability and knowledge to help Sky improve its cable TV and fiber internet services.
Aside from benefitting from a network upgrade, the partnership will also help Sky improve “operational efficiency, greater financial discipline, and organizational improvements”, though Converge has yet to detail its plans for its transformation program.
